The Bola Tinubu-led government plans to allocate around N187.32bn this year to address outstanding debts to local contractors.⁸
These obligations, cataloged as promissory notes in a document by the Debt Management Office dated September 30, 2022, signify a formal commitment to pay certain amounts at future dates. As described by Investopedia, a promissory note is an official commitment by one party to pay a specific amount to another, either on-demand or at a predetermined time.
Per the Government Promissory Notes Act, these notes are funded by the nation’s general revenue and assets. The Central Bank document highlights that payments will encompass three currencies: Naira (N57.83bn), Dollar ($26.48m equivalent to N19.78bn), and Euro (€133.76m translating to N109.71bn). Both notes, one issued in November 2020 and the other in July 2021, are slated for settlement by November 23, 2023. Moreover, The PUNCH previously reported a substantial N11.16tn debt from the Federal Government to contractors for completed highway projects.
